The GBP/USD pair is showing signs of a renewed bullish momentum, trading near 1.3445 at the time of writing. After a period below the 20-day exponential moving average (EMA), the pair has reclaimed this key technical level, signaling that buyers are regaining control. Price stabilization above the recent congestion zone around 1.3350 reinforces a cautiously optimistic near-term outlook.
Momentum indicators support this view: the Relative Strength Index (RSI) has climbed to 56 from below 50, reflecting increasing buying pressure after the late-March lows. While the broader market structure still indicates a recovery phase rather than a fully established uptrend, the current technical signals point to further upside potential if key levels hold.
Key Resistance Levels:
Immediate resistance: 1.3480 (March 23 high)
Next upside target: 1.3600, opening the door for extended bullish moves if momentum continues
Key Support Levels:
Immediate support: 20-day EMA, currently near 1.3370
Critical downside: 1.3300, a breach of which would neutralize the current bullish bias
Trading Strategy:
Bullish scenario: Hold above 1.3370 to target 1.3480 and beyond
Bearish warning: A close below the 20-day EMA exposes 1.3300, signaling caution for buyers
Summary: GBP/USD is in a recovery phase with bullish momentum building, supported by EMA reclaim and improving RSI. Traders should watch 1.3480 for upside confirmation, while respecting 1.3370–1.3350 as a critical support zone.